In the second quarter of 2005, the demand for Taiwanese large LCD (Liquid Crystal Display) panels continued to rise. Coupled with the ongoing capacity expansion, shipments in the quarter amounted to over 20 million units, registering a year-on-year growth of around 48%, reports Market Intelligence Center (MIC), a Taipei-based industry research house. ASP (Average Selling Price) lifted just slightly from the first quarter of 2005. Shipment value added up to more than US$3.7 billion in the second quarter, growing approximately 20% sequentially though declining slightly year-on-year.
Due to the stabilized supply of notebook PC key components, such as CPUs (Central Processing Unit) and chipsets, the second quarter saw notebook PC panel shipments increase significantly from the first. Although LCD monitor panel prices rebounded near the end of the second quarter, the slight price increase was not reflected onto monitor price tags. As a result, LCD monitor prices stayed at an all time low level. Market demand for LCD monitors remained unwavering and boosted the shipments for LCD monitor panels by close to 10% sequentially. Given the strong demand for LCD TV panels, as well as the increasing supply from new production lines, shipments in the second quarter of 2005 rose by over 35% sequentially.
Looking towards the second half of 2005, commencement of the busy sales season for PCs and TVs is expected to continue building up market demand. With panel makers stepping up substrate input and improving yield rates on their 5.5 generation and sixth-generation production lines, the third quarter of 2005 is projected to see the overall shipment volume of Taiwanese large LCD panels exceed 25 million units. The fourth quarter is even looking at around 30 million units in shipments, totaling 100 million units in 2005 with shipment value amounting to US$15.5 billion.
As makers continue to kick up the capacity on lines 5.5 generation, sixth-generation, and up, the short supply for 32" and 37" LCD TV panels will gradually see relief. In the first half of 2005, 32" LCD panels managed to rapidly replace 30" ones as the mainstream size for living room LCD TVs. This bodes well for 37" LCD TV panel shipments, after yield rates on new production lines stabilize in the second half of the year. Due to the foggy outlook on the demand for LCD monitors, as well as the susceptibility of the overall large LCD panel industry to excessive supply, whether or not LCD monitor panel prices will further rebound will require close monitoring.
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Taiwanese Large Area TFT LCD Panel Shipment Volume, 1Q 2003 - 4Q 2005 |
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Source: MIC, July 2005 |
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Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english